$A higher on business survey optimism
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The Australian dollar has closed the day higher, after a monthly survey suggested confidence among Aussie businesses was on the upswing.
At 1700 AEDT on Tuesday, the Australian dollar was trading at 104.52 US cents, up from 104.49 US cents on Friday.
Since 0700 AEDT, the local currency traded between 104.06 US cents and 104.54 cents.
It was trading at 94.79 Japanese yen, up from 94.62 yen on Friday and at 77.74 euro cents, down from 78.17 euro cents.
CMC Markets foreign exchange dealer Tim Waterer said a business survey from the National Australia Bank had boosted the currency on Tuesday.
"The NAB survey made some impact on sentiment, and provided some support for the Aussie dollar," he said.
"It turned what looked like a weak session for the currency, into something with a bit more substance."
NAB's monthly survey showed business confidence rising 12 points in December to an index level of plus three.
Economists suggested this could be a turning point for the Australian economy, making it less likely the Reserve Bank of Australia will cut the cash rate at its meeting, on February 5.
Mr Waterer said the Australian dollar had performed weakly over the long weekend, after positive news about European debt boosted the euro, taking attention away from other currencies.
On Friday, the European Central Bank (ECB) said it could receive up to 137.2 billion euros ($A178.58 billion) in repayment of long-term refinancing operation (LTRO) loans received by the region's banks.
Meanwhile, Australian bond futures prices were lower.
At 1630 on Tuesday, the March 10-year bond futures contract was trading at 96.525 (implying a yield of 3.475 per cent), down from Friday's close of 96.705 (3.295 per cent).
The March three-year bond futures contract was at 97.130 (implying a yield of 2.870 per cent), down from 97.290 (2.710 per cent).
Deutsche Bank bond trader Andrew Bryan said the fall was influenced by the ECB news.
"The catalyst for the recent ranges has been European banks indicating the repayment of some of that LTRO money," he said.
"The market is taking that as a sign of a greater appetite for risk in the trading environment, so bond yields are pushing higher on the back of that."